RIYADH, Saudi Arabia – Singapore technology company Hyflux has withdrawn from a desalination project in Saudi Arabia with the state-owned Saline Water Conversion Corporation (SWCC).
The companies had originally agreed to design, build, supply, test and commission three seawater reverse osmosis desalination plants in Duba, Wajh and Haql (the Project) in the western region of the Kingdom of Saudi Arabia.
However, SWCC then wished to convert the projects into a Build Own-Transfer structure, requiring Hyflux to inject capital to fund the development.
As result, the Singapore firm said it “decided not to commit capital to this project at this time”, with both parties agreeing on termination.
Hyflux received payment amounting to USD$3.5 million from SWCC for work done so far. As a result, there is no material financial impact for the year ended 31 December 2018.